Software major Accenture pins hope on India

With the anticipated revival in technology budgets from Europe getting delayed, software services giants such as Accenture are placing their bets on the fast-growing domestic information technology market

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BANGALORE: With the anticipated revival in technology budgets from Europe getting delayed, software services giants such as Accenture are placing their bets on the fast-growing domestic information technology market.

Avinash Vashistha, chairman and managing director of India operations at software and consulting major Accenture said he remains confident about growth in the Indian IT market, while business from European customers are likely to be lacklustre.

"Europe is clearly in a weak position right now. But the domestic IT market is growing rapidly due to increased IT investments and we expect this trend to continue," said Vashistha, an IT industry veteran who has spent over the last 25 years in this sector.

Over the past two years, top software outsourcing firms have seen tepid growth from Europe due to macroeconomic uncertainties such as high unemployment rates, reduced government spending and fall in economic growth rates. During the April - June quarter, India's second largest software firm Infosys had reported a decline in Europe business citing reduction in client spending.

Vasishtha said he sees an opportunity in the domestic IT market as increasing number of Indian companies now invest in technology to improve their business outcomes. According to market researcher IDC, India's IT market is estimated to touch nearly $45 million by the end of 2014.

Last month, Accenture had cut its full-year outlook, citing a drop in spending from its clients in the consulting space while reporting its third-quarter revenues that came in below analyst estimates. The company now expects to finish the year with a 3% to 4% sales growth as against its previous guidance of 5% to 8%.